Bill Ackman's hedge fund Pershing Square took a 9.77% stake in mortgage giant Freddie Mac, and a 9.98% stake in Fannie Mae, after news broke that at least one investment firm is willing to buy and recapitalize the GSEs.
In testimony delivered today to the House Financial Services subcommittee on capital markets, MBIA CFO Charles Chaplin blamed 'activist' short sellers for much of the company's current predicament, and said that the maligned bond insurer was "well-capitalized" and not in need of any bailout attempt.
For anyone actively working in the mortgage industry, it’s no secret that reverse mortgages have taken a brutal hit in the last two years. The U.S. Department of Housing and Urban Development issued major program changes at the end of 2017 that effectively limited the amount of proceeds and the number of people who could qualify for the loan. The result had lenders across the space enduring sizable volume drops and subsequent gashes to their bottom lines.